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Email this5:14 am
I took a close look at my one ounce gold maple leaf coin. It reads '50 dollars'. Yet according to various agencies of the state and any savvy buyer/banking-scam-emailer it is worth a LOT more.
Why does the Federal gov't of Canada give it any value if no one actually goes by that?
On a related note I read that at least in the USA the argument that 'circulating' gold coins should be exempt from various taxes and controls based on its legal tender amount has been uniformly rejected by various US courts. But the defendants (who all lost), their argument is logical. If I have a penny, largely cooper still no? And it is technically worth 1.03 or whatever based on the market price of copper - no one is going to stop me from transporting a thousand of them without papers across jurisdictional lines, why should gold be any different.? Or for that matter, from sacks of rice or any commodity?
8:59 am
hermes said:
Why does the Federal gov't of Canada give it any value if no one actually goes by that?
These coins are legal tender and you could present them to the Government of Canada to pay your debts at face value. Of course, it makes no sense to do this at today's market price for the actual gold in the coin, but if you owed the government taxes, they will accept any form of legal tender to settle the debt.
On a related note I read that at least in the USA the argument that 'circulating' gold coins should be exempt from various taxes and controls based on its legal tender amount has been uniformly rejected by various US courts. But the defendants (who all lost), their argument is logical. If I have a penny, largely cooper still no? And it is technically worth 1.03 or whatever based on the market price of copper - no one is going to stop me from transporting a thousand of them without papers across jurisdictional lines, why should gold be any different.? Or for that matter, from sacks of rice or any commodity?
According to Scotia Moccatta (http://www.scotiamocatta.com/p....._sales_tax?) precious metals are exempt from GST/HST, but some provinces charge sales tax on them (I tried to find out which provinces, but I couldn't).
From this link (I don't know how accurate it is): http://preciousmetals.wikia.co....._Sales_Tax there appears to be different rules in different states in the US for charging sales tax.
Capital Gains Taxes apply in Canada and the US, with the exception of Utah, which recently removed them (http://money.cnn.com/2011/03/2...../index.htm)
2:42 pm
I did not explain myself well. What I meant is this..
There is a $10,000 cash 'export' limit in and out of many countries these days (as far as I know in 1912 no one cared). I wonder why the arguments doesn't work that a few thousand dollars o gold legal tender coins must be valued at borders (for fintrac purposes) at its legal tender value ad other metal coins (copper etc) are.
1:17 pm
March 25, 2009
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hermes said:
I took a close look at my one ounce gold maple leaf coin. It reads '50 dollars'. Yet according to various agencies of the state and any savvy buyer/banking-scam-emailer it is worth a LOT more.
Pennies are also worth more than 1 cent as well. (2.3 cents I think due to the copper content).
A gold coin is just worth what's it is stamped on it; in this case $50, anything about that is foolish. I wouldn't "pay" more for a coin that it's actual value declared by the Royal Canadian Mint. BUT, I have been collecting coins for the past 30 odd years and to a collector a coin is worth more, but NOT because what it is made of, but the year, condition and number made.
BECAREFUL if you are buying coins at higher than face value and it's NOT a collector coin, so many people have been burned in the past... Gold coin included in the 80s when gold fell by 75% almost overnight.
Have a great day
12:00 pm
In recent years, pennies and other low denomination coins in Canada are just plated steel (or other cheap metals such as zinc). Look for the letter P under the queen on the obverse. Try running a magnet through a bunch of pennies, some will stick, some won't.
3:51 am
March 25, 2009
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Jim said:
In recent years, pennies and other low denomination coins in Canada are just plated steel (or other cheap metals such as zinc). Look for the letter P under the queen on the obverse. Try running a magnet through a bunch of pennies, some will stick, some won't.
Great point! Also with silver a magnet WON'T stick to it. (good for finding those 1969 silver quarters)
Main point: If people are unwilling to pay more for a silver quarter or a real copper penny because it's metal content is worth more than the coin demonination then why pay more for a $50 gold coin?
Have a great day
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